Vietnamese exports to Canada enjoy surge over seven-month period

With this growth momentum, the country’s exports to the demanding market this year are anticipated to surpass the US$6 billion mark and achieve a minimum growth of 15% in comparison to 2021’s figures.

Tran Thu Quynh, the Vietnamese trade counselor in Canada, revealed that strong export growth was recorded in commodity groups such as seafood, iron and steel, plastic materials and chemicals with iron, steel, electric cables, and construction metal products, all of which are set to witness robust growth ahead in the remaining months of the year.

Amid the complicated global situation, Canada is keen to diversify supply sources in order to avoid disruption. This comes amid Canadian businesses showing great interest in the supply source from the Vietnamese market.

Being a nation involved in a wide network of Free Trade Agreements (FTAs), there are bright prospects ahead for Vietnamese firms to co-operate in production activities and Original Equipment Manufacturers (OEM) outsourcing for Canadian brands.

Most notably, both sides have complementary agricultural products. In line with this, Vietnam has strengths in rice, seafood, and spices, whilst Canada has advantages in products such as beef, fruit, wheat, and cooking oil.

Both countries are capable of co-operating to increase added value for the agricultural industry through the exchange of agricultural services, including post-harvest preservation, processing solutions, and packaging solutions for export.

Quynh noted that within the framework of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the upcoming FTA between Canada and ASEAN, Canadian businesses have shown a keen interest in working closely with Vietnamese enterprises in production activities to maximise tax incentives.

Vietnamese food processing enterprises and associations have therefore been advised to cater to these trends in order to fully tap into the numerous advantages on offer, with the ultimate aim of turning the nation into a centre for agricultural product processing and ranking among the top 10 countries in the world by 2030.

According to details given by the Vietnam Trade Office in Canada, OEM outsourcing for Canadian enterprises will also create prime opportunities for Vietnamese enterprises to turn to large-scale and deep processing, as well as building their own marketing strategies and brands.

Moreover, although local firms cannot directly export their products under their own brand, outsourcing to foreign supermarket systems will open up more prospects for Vietnamese products as they seek to gain greater entry to demanding markets which have higher requirements.